Cramer's Morning Take: Stanley Black & Decker 7/30/24

Jim Cramer (0:02)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting. We've got a benign bond market, and we've got a lot of stocks doing what we thought they would do, because we are in a position where if your company is incrementally better, the stock is going to go up, and if your company is incrementally worse, your stock is going to get clobbered. And that's the story of Stanley Black & Decker versus Procter & Gamble.

Jeff Marks (0:26)

Yeah, I think that's a perfect explanation. Maybe to start with Stanley Black & Decker, you can see shares hitting what I believe is a two-year high off of a very nice earnings beat, but we're talking 1% organic growth. Now, they haven't been seeing growth, so that does matter in the quarter. They raised their full-year guide, raised the free cash flow guide, buying back, paying down a lot of debt, supporting a nice big dividend yield. But again, it's this notion that they are seeing sequential margin improvement from all the cost takeout, the inventory reduction.

Jim Cramer (0:59)

And that's what Fortune Brands Innovations did the same thing. The end markets weren't good. But now people are saying the end markets will be taken care of by the Fed. So you've got people going to get a jump on the end markets, and that's what you're seeing right here with a company that frankly we picked because of this. We said it over and over again, particularly right down here. Now look, it's a rate play. There's nothing we can do.

Jeff Marks (1:17)

Exactly.

Jim Cramer (1:18)

That's exactly what it is.

Jeff Marks (1:19)

And that's a thesis. I know the CEO, you had them all. And shortly after the last quarter, and you kind of gave this concept that stock could be spring-loaded once the Fed starts cutting rates. Well, we're going to have a Fed meeting tomorrow. They're not going to cut rates, I don't think, but maybe setting that up for the next meeting. And you can see stocks like to anticipate things, right? And that's what's played out over the last couple of weeks. The stock's gone from below 80 to 104

Jim Cramer (1:46)

And we bought this when it was most horrible. It was very difficult to buy. We discussed it ad nausea, and we realized, you know what, if we don't do it now, we're never going to do it. And bingo, that's what happened. Join the CNBC Investing Club with Jim Cramer to catch my member-exclusive morning minis every day at 10, 20 a.m. Visit cnbc.com/morningtake to become a member today. That's one word, morning take.

SPEAKER_3 (2:14)

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